If the annual interest rate is 0%, the present value of receiving $210 in the next year is:
A)$221.
B)$200.
C)$201.
D)$210.

Name: If the annual interest rate is 0%, the present value of receiving $210 in the next year is: A)$221. B)$200. C)$201. D)$210.
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Question

Quizplus · Accepted Answer

Since the annual interest rate is 0%, the present value and future value of money are the same. Therefore, the present value of receiving $210 in the next year is simply $210. Therefore, the answer is D.

If the Annual Interest Rate Is 0%, the Present Value